'Every founder should be using it': Small businesses believe AI will be vital to growth and survival
Small businesses increasingly believe AI will be vital to their survival and growth over the next five years.
A new report from Small Business Britain and BT is calling for the UK to boost support to capitalise on the transformative power of AI and avoid smaller firms falling behind.
'The AI Opportunity for Small Businesses' report - which surveyed 2,000 business owners - shows 60% of small firms predict AI will be essential for them to thrive and continue in the next 5 years, with 62% now using AI.
With the help of AI, small businesses are automating time-consuming tasks, improving customer service, and streamlining operations, freeing up valuable time to focus on innovation and growth. The most common applications include marketing (47%), operations (17%), and customer service (8%).
However, the data also shows the potential of AI is being held back by significant barriers to entry, which disproportionately affect smaller firms.
Over two thirds (68%) want more affordable AI solutions, with half of entrepreneurs admitting they lack understanding of the new technology (60%) and want more practical support (51%).
With many small firms at vastly different stages of adoption, the report has issued 13 recommendations for Government, technology providers, educators, and business networks to bridge this gap and avoid creating an 'AI disparity' among the nation's 5.45m small businesses.
It calls for coordinated, targeted action to open up the AI opportunity for all small businesses, helping them to increase productivity, reduce costs, and open new markets.
The recommendations include a need for more cost-effective AI solutions, as well as incentives to encourage early adoption, such as funding, grants and tax-breaks, alongside help for small businesses to measure return on investment.
Expanded and simplified AI support and education is also recommended, alongside more promotion of easy-to-use and affordable AI tools.
The idea of a centralised, national AI resource hub is also being put forward to pool practical guidance, AI tool reviews, training, and FAQs.
This should be accompanied by peer-led learning and mentoring opportunities, which are tailored to individual sectors.
Authors of the report also believe increased regulatory clarity is needed, with easy-to-understand guides on compliance and ethics.
Michelle Ovens CBE, Founder, Small Business Britain, said, "AI is transforming industries across the UK and is now a critical conversation for small businesses.
"While there is excitement, there is also a clear need for expert guidance and support, as entrepreneurs are at vastly different stages of understanding and adoption.
"While some have fully integrated AI into their operations, others are still grappling with what AI is and how it can help. We cannot risk any small businesses being left behind."
The report further argues that AI has the potential to level the playing field for all entrepreneurs, provided the right resources and training are made available and accessibility and inclusivity are built into the design of tools and support.
Under-represented founders, particularly disabled entrepreneurs, show high engagement with AI, with 64% already utilising it, but only 14% reporting a strong understanding of its benefits.
Dr. Chris Sims, Chief Commercial Officer, BT Business, said, 'Small businesses are the beating heart of the UK economy, yet our report highlights an uneven adoption of AI, risking a divide where some gain a competitive edge while others are left behind. There is an urgent need for accessible training, affordable tools, and inclusive pathways to AI adoption, helping to democratise the technology. Our goal is to empower businesses of every size to leverage AI for growth and efficiency.'
Amelia Peckham, co-founder of Cool Crutches, said, 'Incorporating AI in the right way to have maximum impact is key. Every founder should be using it—we have implemented it into our marketing, and it has transformed the speed at which we can work, as well as efficiency for me as a founder and the team.
"With a much bigger output without adding cost, it's a no-brainer - the key is knowing how to use it the right way, from experts who know. That's where Small Business Britain comes in - teaching us what tech to use, when and most importantly what to avoid to ensure we are on the front, not back foot when growing businesses to last!'
The report will launch with an event at the Science Museum in London, welcoming entrepreneurs from across the country, AI experts, and other business representatives.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scotsman
4 days ago
- Scotsman
Nail art company named Small Business of the Year
Welsh business Home of Nail Art, on a mission to improve safety standards in the beauty industry, won Small Business of the Year at the Small Awards; photographed with Sue Perkins (left) and Michelle Ovens CBE (right) | Small Business Britain This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement. A Welsh nail art business has been named 'Small Business of the Year' by Small Business Britain at this year's Small Awards, with ten other stand-out, inspirational small businesses from across the country also celebrated. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... HONA – 'Home of Nail Art' – is a hypoallergenic nail product business set up to raise standards in the nail industry by providing safe, high-performance products for professional nail technicians. Michael Henson from Newport founded HONA after seeing nail artists struggle with allergens in nail products and a lack of transparency from suppliers. The Small Awards celebrates the nation's 'smallest and greatest' small businesses across all sectors, and is sponsored by digital marketing leader Constant Contact. Advertisement Hide Ad Advertisement Hide Ad HONA was awarded the prestigious Small Business of the Year title by Sue Perkins at a glittering ceremony in London, as well as being awarded winner of the 'Supply Chain Champion' category. Leyla Alexander Design (right) won the 'Sole to Sole' award for best one-person business at this year's Small Awards, this year sponsored by digital marketing leader Constant Contact | Small Business Britain Ten other UK small businesses also received awards, including Blind Beauty, a skin care brand set up when founder Hazal Baybasin lost her sight, as well as Italian family eatery 'Shambles Restaurant and Bar' in Teddington, co-run by Massimo Langella and first established by his parents. Now in its ninth year, the annual Small Awards is organised by Small Business Britain, which champions, inspires, and accelerates small businesses in the UK. From high street heroes and sole traders to sustainability leaders, over 80 independent businesses across 11 categories were celebrated and spotlighted for their incredible achievements and community contributions. The full list of winners included: Advertisement Hide Ad Advertisement Hide Ad Deaf Friendly Limited, a Deafness education business, which has even advised the Welsh Government on developing the BSL GCSE, won the 'At Your Service' award for the best small service business. Cable & Blake Fabrics of the Lakes, a textiles business based in Windermere using local Herdwick wool, won the 'Bricks and Clicks' award for best multi-channel business. Uniquely Local Experiences, an online platform that showcases Yorkshire's best local gift experiences, won the 'Digital Star' award. Books On The Hill, a bookshop with a tearoom, which champions accessibility to books, won the 'Heart of Gold' award for their community contribution. Vintage at the Tower, a shop that offers preloved high-quality items in Corbridge in the heart of Northumberland, won 'High Street Hero', for best high street business. Shambles Restaurant & Wine Bar, a family-run Italian eatery in London established in 1983 won the 'Legacy Award' for the best family business. Blind Beauty, a skincare brand founded by Hazal Baybasin when she lost her sight in 2019 and wanted to make beauty accessible to everyone, won the 'Mission Possible' award. Disruptor London, a skin and beard care brand set up to improve sustainability in the beauty industry, won the 'Net Hero' award for its long-standing sustainability efforts. Mini Healthcare Heroes, set up by a paramedic in the Midlands who wanted to inspire children to be curious about healthcare and train them in first aid, won the 'New Kid on the Block' award for their growth in less than a year. Leyla Alexander Design, a web designer which helps small, independent businesses stand out, won the 'Sole to Sole' award for the best one-person business. Michelle Ovens CBE, Founder of Small Business Britain, stated: "Small businesses are the heart and soul of their communities and contribute massively to the UK economy. Every year, The Small Awards recognise their efforts after a nationwide search of the smallest and greatest of businesses. "We are incredibly proud of all the nominees, and congratulate the winners for their success. We are thrilled to celebrate them at our glittering London ceremony, which champions these inspiring entrepreneurs and their businesses. I am excited to see them go from strength to strength, inspiring and supporting other small businesses on their journey." Hazal Baybasin (left) and her accessible skincare brand, Blind Beauty, won Mission Possible at the Small Awards ceremony in London | Small Business Britain The Small Awards was judged by a panel of leading enterprise experts. Guests enjoyed a night of entertainment at St Mary's church in London, with performances by the London City Voices choir and catering by independent providers. Erika Robinson, UK General Manager at Constant Contact, said: 'Constant Contact exists to help small businesses succeed and grow, and the Small Awards shine a much-deserved spotlight on the incredible entrepreneurs doing just that. Advertisement Hide Ad Advertisement Hide Ad 'Our research shows that 79 percent of Brits feel small businesses positively impact their lives - and this year's winners exemplify that impact through their innovation, resilience and deep community roots. We're proud to support their efforts and their vital role in driving the UK economy forward.' Michael Henson, founder of the Small Business of the Year Award winner HONA, said: 'What an honour to win tonight—we are so grateful for the judges and Small Business Britain for the recognition. Awards like this give us the validation and push to keep doing what we're doing, making a difference in the beauty industry.' To find out more about the winners visit
Scotsman
4 days ago
- Scotsman
Nail art company named Small Business of the Year
Welsh business Home of Nail Art, on a mission to improve safety standards in the beauty industry, won Small Business of the Year at the Small Awards; photographed with Sue Perkins (left) and Michelle Ovens CBE (right) | Small Business Britain This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement. A Welsh nail art business has been named 'Small Business of the Year' by Small Business Britain at this year's Small Awards, with ten other stand-out, inspirational small businesses from across the country also celebrated. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... HONA – 'Home of Nail Art' – is a hypoallergenic nail product business set up to raise standards in the nail industry by providing safe, high-performance products for professional nail technicians. Michael Henson from Newport founded HONA after seeing nail artists struggle with allergens in nail products and a lack of transparency from suppliers. The Small Awards celebrates the nation's 'smallest and greatest' small businesses across all sectors, and is sponsored by digital marketing leader Constant Contact. Advertisement Hide Ad Advertisement Hide Ad HONA was awarded the prestigious Small Business of the Year title by Sue Perkins at a glittering ceremony in London, as well as being awarded winner of the 'Supply Chain Champion' category. Leyla Alexander Design (right) won the 'Sole to Sole' award for best one-person business at this year's Small Awards, this year sponsored by digital marketing leader Constant Contact | Small Business Britain Ten other UK small businesses also received awards, including Blind Beauty, a skin care brand set up when founder Hazal Baybasin lost her sight, as well as Italian family eatery 'Shambles Restaurant and Bar' in Teddington, co-run by Massimo Langella and first established by his parents. Now in its ninth year, the annual Small Awards is organised by Small Business Britain, which champions, inspires, and accelerates small businesses in the UK. From high street heroes and sole traders to sustainability leaders, over 80 independent businesses across 11 categories were celebrated and spotlighted for their incredible achievements and community contributions. The full list of winners included: Advertisement Hide Ad Advertisement Hide Ad Deaf Friendly Limited, a Deafness education business, which has even advised the Welsh Government on developing the BSL GCSE, won the 'At Your Service' award for the best small service business. Cable & Blake Fabrics of the Lakes, a textiles business based in Windermere using local Herdwick wool, won the 'Bricks and Clicks' award for best multi-channel business. Uniquely Local Experiences, an online platform that showcases Yorkshire's best local gift experiences, won the 'Digital Star' award. Books On The Hill, a bookshop with a tearoom, which champions accessibility to books, won the 'Heart of Gold' award for their community contribution. Vintage at the Tower, a shop that offers preloved high-quality items in Corbridge in the heart of Northumberland, won 'High Street Hero', for best high street business. Shambles Restaurant & Wine Bar, a family-run Italian eatery in London established in 1983 won the 'Legacy Award' for the best family business. Blind Beauty, a skincare brand founded by Hazal Baybasin when she lost her sight in 2019 and wanted to make beauty accessible to everyone, won the 'Mission Possible' award. Disruptor London, a skin and beard care brand set up to improve sustainability in the beauty industry, won the 'Net Hero' award for its long-standing sustainability efforts. Mini Healthcare Heroes, set up by a paramedic in the Midlands who wanted to inspire children to be curious about healthcare and train them in first aid, won the 'New Kid on the Block' award for their growth in less than a year. Leyla Alexander Design, a web designer which helps small, independent businesses stand out, won the 'Sole to Sole' award for the best one-person business. Michelle Ovens CBE, Founder of Small Business Britain, stated: "Small businesses are the heart and soul of their communities and contribute massively to the UK economy. Every year, The Small Awards recognise their efforts after a nationwide search of the smallest and greatest of businesses. "We are incredibly proud of all the nominees, and congratulate the winners for their success. We are thrilled to celebrate them at our glittering London ceremony, which champions these inspiring entrepreneurs and their businesses. I am excited to see them go from strength to strength, inspiring and supporting other small businesses on their journey." Hazal Baybasin (left) and her accessible skincare brand, Blind Beauty, won Mission Possible at the Small Awards ceremony in London | Small Business Britain The Small Awards was judged by a panel of leading enterprise experts. Guests enjoyed a night of entertainment at St Mary's church in London, with performances by the London City Voices choir and catering by independent providers. Erika Robinson, UK General Manager at Constant Contact, said: 'Constant Contact exists to help small businesses succeed and grow, and the Small Awards shine a much-deserved spotlight on the incredible entrepreneurs doing just that. Advertisement Hide Ad Advertisement Hide Ad 'Our research shows that 79 percent of Brits feel small businesses positively impact their lives - and this year's winners exemplify that impact through their innovation, resilience and deep community roots. We're proud to support their efforts and their vital role in driving the UK economy forward.' Michael Henson, founder of the Small Business of the Year Award winner HONA, said: 'What an honour to win tonight—we are so grateful for the judges and Small Business Britain for the recognition. Awards like this give us the validation and push to keep doing what we're doing, making a difference in the beauty industry.'
North Wales Live
6 days ago
- North Wales Live
Willow Review reports significant 'green growth' opportunity for UK SMEs
The UK economy could be boosted by a wave of 'green growth' led by Britain's small and medium sized businesses, according to the final report from the independent, Government-backed Willow Review which highlights the economic case for going green. The Review found many SMEs embracing sustainability are benefitting from considerable financial gains. New research from The Willow Review finds that among SMEs benefitting from sustainability practices, two thirds (67%) of SMEs report reduced operational costs, over half are attracting new customers and a third are seeing improved customer loyalty. In publishing its final report, The Willow Review is issuing a series of fourteen recommendations for Government, financial services, and the UK's SME community, to accelerate these financial gains and encourage a 'mass shift' in SME sustainability adoption to boost business resilience and growth. With SMEs accounting for 99% of British businesses and responsible for around half of all UK Business Carbon emissions, the UK's 5.45 million small businesses have a vital role to play in driving green growth and reducing the nation's impact on climate change. Launched last November to demonstrate the financial benefits of SMEs going green, The Willow Review has also concluded that while many SMEs are already seeing the advantages of sustainability, barriers such as upfront costs, knowledge gaps, and financial support limitations continue to slow widespread adoption. The Willow Review is calling for wide-ranging action to improve the landscape for SMEs to realise green growth opportunities across several areas: making sustainability simple and accessible, improving support across financial services and government, as well as improving the policy landscape and access to finance. Making sustainability simple and accessible The Willow Review's final report found that while many small businesses want to act more sustainably, they struggle with complexity, mixed messaging, and a lack of time, funding or accessible support. Indeed, earlier research from Small Business Britain and BT found that over half (53%) of small business owners feel they lack the time or resource to take sustainability action. And according to The Willow Review's data – which surveyed 425 small businesses on the benefits of sustainability - 72% also cited perceived cost of implementation or access to finance as key barriers. Despite this, The Willow Review also found that for over half of SMEs benefiting financially from sustainability practices, cost savings was a motivation for these efforts. Out of this group over 65% now use sustainable materials, 60% introduced waste reduction measures, 57% reduced business travel and 45% partner with sustainable suppliers. To help more of the UK's SMEs embrace sustainability and identify changes that will boost their growth, The Willow Review sets out a simple five-point sustainability plan for small businesses, with a focus on sustainable materials, waste reduction, logistics efficiency, renewable energy, and green supply chains. To further support SMEs on the sustainability journey the Review is also advocating for increased mentoring and peer-networking, such as facilitating SME Sustainability Networks. Financing the Future The need for simplified access to finance was also called out, alongside support to show the commercial advantage of going green and business planning to clarify return on investment. In particular, it identified an opportunity to improve access and visibility of existing funding options, from both the public and private sectors. The Review particularly recommends Government simplifies the application process for grants, enhances signposting and implements local sustainability champions to help guide businesses to funding options and support. As engagement with sustainability for commercial opportunities grows, it argues that the opportunities and flexibility of 'green finance' must grow too, alongside innovation and exploration in these areas. This includes recommendations to adapt current Government-backed funding initiatives through the British Business Bank, such as extending 'Start-Up Loans' to encompass new 'Green-Up Loans' to support small businesses to make necessary transitions. Driving forward fiscal incentives for SME sustainability is also proposed, including simplifying existing schemes and boosting awareness and accessibility. The Willow Review also calls for the existing Government Growth Guarantee Scheme to be expanded to include Green Initiatives and enable and incentivise larger-scale SME sustainability investments. Creating a landscape of success The importance of a clear policy framework that supports SMEs to factor sustainability into business planning and the need for Government interventions to support SMEs is also highlighted. For example, with more than half of UK commercial properties being rented, offering incentives for landlords to upgrade SME premises could be one way for Government to help SMEs transition to green energy. Integrating sustainability into the core offering of the Government's new Business Growth Service is another example. A positive message Finally, The Willow Review also recommends championing a more positive, solutions-focused message about sustainability, positioning the green transition as a profit-driving opportunity, not simply a cost to be managed. Existing resources, like the UK Business Climate Hub, should be amplified as part of this update. Jointly chaired by the Minister for Small Business, Gareth Thomas, Nick Stace OBE, Global Head of Sustainability Engagement for Barclays, and Michelle Ovens CBE, Founder, Small Business Britain, The Willow Review has been supported by a steering board of industry experts. This includes representatives from the Department of Energy Security and Net Zero, British Chambers of Commerce (BCC), BT, Business Climate Hub, Federation of Small Businesses (FSB), Startup Discovery School and Planet Mark, as well as academics from the University of Glasgow. Michelle Ovens CBE, Founder of Small Business Britain and Co-Chair of The Willow Review said: 'The Willow Review's report is about recognising that sustainability and commercial success can, and must, go hand in hand. Too often, sustainability has been presented as a moral obligation or regulatory hurdle, rather than an opportunity for growth and resilience. We must change the conversation. Through deep engagement with the small business community, we have uncovered powerful examples of businesses using sustainability to cut costs, reach new markets, and build stronger relationships with customers and employees alike. The small businesses that embrace this now will not only future-proof themselves, but also lead the way in shaping a more resilient and inclusive economy for the UK.' Gareth Thomas, Minister for Small Businesses and Co-Chair of the Willow Review, said: 'We are determined to give small businesses the support they need to play a leading role in kickstarting economic growth and making Britain a clean energy superpower. 'The Willow Review sets out a clear case for why this is important, showing that sustainability is not just an environmental goal, but a solid business strategy, leading to increased opportunities for growth. 'We look forward to engaging with the report's recommendations and will publish a response in due course.' Nick Stace OBE, Global Head of Sustainability Engagement for Barclays, said: 'The Willow Review is an incredible opportunity to support small businesses across the UK to realise the financial benefits of adopting sustainability practices. The growth agenda for the UK needs small businesses to flourish and this report provides recommendations to support that endeavour.' Following this final report, The Willow Review will continue to work closely with government, financial services, and SMEs to ensure sustainability becomes embedded as a core driver of business growth. A key priority will be working with the Net Zero Council to bridge the gap between the commercial opportunities for SMEs and the wider global climate goals.
